In a significant development, the United Auto Workers (UAW) union and Ford Motor Co. have announced a tentative agreement, potentially concluding a nearly six-week-long strike that has affected the automaker. The announcement was made by the UAW on Wednesday night, marking a pivotal moment in the ongoing labor disputes that have gripped the automotive industry.
The proposed contract includes several notable provisions. Notably, it promises a 25% pay increase over the duration of the agreement, which would elevate the top wage to over $40 an hour. Starting wages would see a substantial boost of 68%, raising them to over $28 an hour. Other key elements of the deal encompass the reinstatement of cost-of-living adjustments, a three-year path to top wages, and the right to strike over potential plant closures.
UAW President Shawn Fain, in a video statement, emphasized the union's achievements, stating, "We told Ford to pony up and they did. We won things nobody thought was possible." He highlighted that the value of Ford's offer surged by 50% from when the targeted strikes began on September 15.
However, the tentative agreement still requires the approval of local UAW leaders, followed by a ratification by a simple majority of Ford's 57,000 union-represented workers. In the interim, workers currently on strike will return to their jobs while the union's approval and voting process is underway.
Record profits mean record contracts. We have a tentative agreement at Ford. #StandUpUAW pic.twitter.com/Z00T5CfQJN — UAW (@UAW) October 26, 2023
Chuck Browning, UAW Vice President, who played a pivotal role in the negotiations with Ford, remarked on the strategic nature of the union's approach. "Like everything we've done during this 'stand-up' strike, this is a strategic move to get the best deal possible," he said.
Ford, in response to the tentative agreement, expressed its satisfaction and emphasized its focus on resuming production at key plants, including the Kentucky Truck Plant, the Michigan Assembly Plant, and the Chicago Assembly Plant.
The gains from this deal are reportedly valued at over four times the gains from the 2019 contract. This would provide more in base wage increases than Ford workers have seen in the past two decades.
The negotiations between the UAW and Ford, as well as other major automakers like General Motors and Stellantis, have been intense and protracted. The UAW adopted a novel approach this time, initiating negotiations with all three automakers simultaneously, a departure from the traditional method of negotiating with each company individually.
Both GM and Stellantis issued statements on Wednesday night, emphasizing their commitment to reaching agreements with the UAW "as soon as possible."
The tentative agreement with Ford is seen as a significant milestone, especially given the broader context of labor negotiations in the automotive industry. The deal, if ratified, could set a precedent for future negotiations and potentially influence the outcomes of discussions with other major automakers.
